This invention relates to methods and systems for issuing stored value cards, and more particularly to stored value cards which are funded by a particular sponsor.
On many occasions, companies must issue checks to people for payment of wages, claims, refunds, reimbursement of expenses, or other reasons. For example, a company may have to issue a check every Friday to pay employees for the previous weeks work. In another example, insurance companies have to issue checks to pay insurance claims. Issuing checks may be costly, as the processing costs associated with issuance, reconciliation, and/or replacement of lost or damaged checks may be substantial.
Checks may also have the drawback of being inconvenient to the recipient. Many banks require a checkholder to have an account with the bank to cash a check. Often, bank accounts charge monthly service fees, and/or charge based on the number of transactions (checks written, electronic debits, deposits, etc.) made in a predetermined time period. For non-account holders, checks must be cashed at the bank from where the check was drawn, or a fee is charged to cash the check. These fees may be five percent of the total amount of the check or more, thereby reducing the amount the recipient actually receives.
These and other drawbacks exist to the aforementioned alternatives.
An object of the invention is to overcome these and other drawbacks in existing purchase schemes.
A further object of the invention is to provide a stored value card which can replace the need to issue checks.
A further object of the invention is to provide a stored value card which allows immediate access to funds without requiring cash or access to a personal checking account.
A further object of the invention is to provide a stored value card with an associated sponsor funded stored value account (or xe2x80x9caccountxe2x80x9d or xe2x80x9cstored value accountxe2x80x9d), where a sponsor may add funds to the account, but a cardholder cannot add funds to the account.
These and other objects of the invention are accomplished according to various embodiments of the invention. One embodiment of the invention provides a method of issuing a stored value card affiliated with a sponsor and an issuer, where the stored value card is funded by a sponsor and issued to a cardholder. An account associated with the stored value card is created, where the sponsor funds the account. The stored value card is issued to the cardholder, where the cardholder is prohibited from depositing fluids into the account.
Another embodiment of the invention provides a system for issuing a stored value card affiliated with a sponsor and an issuer, where the stored value card is funded [is funded] by the sponsor and issued to a cardholder. The system may comprise a processor for creating an account in a database. A sponsor input/output may receive instructions for the processor to fund the account. An issuing device may issue the stored value card to the cardholder.
Other objects and advantages exist for the present invention.